500 UK companies struggling with IFRS
Up to 500 listed companies in the UK could struggle to comply with international financial reporting standards, according to Big Four firm Ernst & Young.
The company estimates that around a quarter of those companies required to move to IFRS from next year are still well behind in their preparations and could suffer when it comes time to report under the new regime.
Such under-preparedness could cause problems for the market at a time when comparability will already be difficult, according to Allister Wilson, E&Y’s UK head of financial reporting.
‘The danger is that if the market doesn’t understand the changes it adopts a sell now, understand later approach,’ said Wilson. He added that for under prepared companies there was an additional risk that it ‘cannot respond to market queries’.